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By Alice McFarlane

Viterra-Bunge sale

Viterra-Bunge Acquisition Approval Fails Canada’s Grain Farmers

Jan 15, 2025 | 2:12 PM

A national farm group is disappointed with the decision made yesterday by the Minister of Transport to approve the acquisition of Viterra by Bunge without a divestment of G3.

Grain Growers of Canada (GGC) said the approval does include the sale of six grain elevators in Western Canada and a $520 million investment commitment from Bunge, the measures are inadequate to address the impact on market competition.

GGC had raised concerns about the merger and its long-term consequences for farmers, according to Executive Director Kyle Larkin.

“Minister Anand’s decision to approve the acquisition, even with conditions, doesn’t go nearly far enough,” Larkin said in a news release. “The divestment of six grain elevators is a token gesture in the face of a company that maintains a 25 per cent stake in G3, greatly reducing competition across the Prairies and in Quebec. These conditions do little to offset the $770 million annual cost this merger will impose on farmers.”

The Competition Bureau and research conducted by the University of Saskatchewan found that an acquisition without a divestment of G3 would weaken competition in certain geographic regions across the country, notably in Manitoba and Saskatchewan canola crushing markets. The university report calculated a $770 million loss in revenues for grain farmers annually.

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Larkin said the decision is a direct hit to producer’s revenue.

“For example, the average grain farm in Manitoba stands to lose $10,000 in revenue annually. This decision compounds an already difficult landscape, as farmers continue to face rising input costs, falling commodity prices, and increased taxes,” he said.

Additional concerns raised by GGC include the market concentration of grain terminals at ports in Quebec and the implications of the merger on the announced canola crushing facility in Regina.

“This is a missed opportunity to protect competition in Canada’s grain sector and prioritize the interests of producers who grow the food that Canada and the world rely on,” he added. “We are urging the government to revisit these conditions, strengthen measures to foster competition, and take meaningful steps to support Canada’s grain farmers.”

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alice.mcfarlane@pattisonmedia.com

On X: @farmnewsNOW